I saw Lakshya (meaning goal) yesterday for the first time. It is an India war film revolving around the life of a person ( Hrithik Ro...

Investing in a Cryptocurrency

I believe the Blockchain is a truly revolutionary technology which
can impact many industries in the future. Crypto-tokens are essentially the
store of value of a particular application of the Blockchain. Since the
underlying technology is robust and sustainable, the currencies built on it are
also the same.

To make an investment in a cryptocurrency, I would recommend the
following steps:

1. Check out various currencies and read about the underlying
Blockchain applications.

2. Shortlist a currency which has a clear, concise and
understandable use-case. The use-case should be around a real world problem,
where the application of the Blockchain has the potential to add value.

4. Checkout the team behind the currency. The team should be a
good mix of people having the necessary skills and experience to execute.

5. If all seems fine, go further. Else go back to Step 2.

6. Try to arrive at a fundamental value for the currency. Check
out my post on this. If this is difficult to do, check out any comparable
currencies and compare their metrics (price and quantity traded) to arrive at a
value.